DHS awards $105.7M for airport security screening, with 6 bidders competing for a 5-year contract

Contract Overview

Contract Amount: $105,699,775 ($105.7M)

Contractor: VMD Systems Integrators, LLC

Awarding Agency: Department of Homeland Security

Start Date: 2020-05-01

End Date: 2025-04-30

Contract Duration: 1,825 days

Daily Burn Rate: $57.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: COMPREHENSIVE SECURITY SCREENING SERVICES AT KANSAS CITY INTERNATIONAL AIRPORT (MCI) P00002 REVISED POP, SO HAD TO UPDATE BASE CAR WITH NEW START DATE

Place of Performance

Location: KANSAS CITY, PLATTE County, MISSOURI, 64163

State: Missouri Government Spending

Plain-Language Summary

Department of Homeland Security obligated $105.7 million to VMD SYSTEMS INTEGRATORS, LLC for work described as: COMPREHENSIVE SECURITY SCREENING SERVICES AT KANSAS CITY INTERNATIONAL AIRPORT (MCI) P00002 REVISED POP, SO HAD TO UPDATE BASE CAR WITH NEW START DATE Key points: 1. The contract's value of $105.7 million over five years suggests a significant investment in airport security infrastructure. 2. Full and open competition with six bidders indicates a healthy market for security screening services. 3. The firm-fixed-price contract type helps mitigate cost overruns for the government. 4. The contract duration of 1825 days (5 years) provides stability for service delivery and planning. 5. The award to VMD Systems Integrators, LLC, positions them as a key provider for TSA screening services. 6. The North American Industry Classification System (NAICS) code 561612 points to a specialized security services market.

Value Assessment

Rating: good

The total contract value of $105.7 million over five years averages to approximately $21.1 million annually. Benchmarking this against similar large-scale airport security screening contracts would provide a clearer picture of value for money. However, the presence of six bidders in a full and open competition suggests that pricing was likely competitive, which generally leads to better value. The firm-fixed-price nature of the award also helps control costs.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, with six bids received. This level of competition is generally considered robust and suggests that multiple capable vendors were interested in providing these essential security services. A higher number of bidders typically leads to more competitive pricing and a wider range of innovative solutions being considered by the agency.

Taxpayer Impact: The robust competition for this contract is beneficial for taxpayers as it likely drove down the price of security screening services, ensuring more efficient use of public funds.

Public Impact

The primary beneficiaries are travelers using Kansas City International Airport (MCI), who will experience enhanced security screening. The contract ensures the provision of comprehensive security screening services, including personnel and potentially equipment, to maintain airport safety. The geographic impact is focused on Kansas City International Airport in Missouri. The contract supports jobs within the security services industry, likely employing numerous screening personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for over-reliance on a single contractor for a critical security function.
Ensuring consistent quality and performance across all screening points throughout the contract duration.
Managing potential labor disputes or staffing shortages that could impact screening operations.

Positive Signals

The firm-fixed-price contract structure provides cost certainty for the government.
The full and open competition indicates a competitive market, likely leading to better pricing.
The five-year duration allows for stable service provision and planning for the Transportation Security Administration.

Sector Analysis

The security services industry, particularly for airport screening, is a significant sector within the broader professional, scientific, and technical services market. This contract falls under security guards and patrol services (NAICS 561612). The market is characterized by stringent regulatory requirements, high labor intensity, and the need for specialized training and vetting. Spending in this area is driven by federal mandates for transportation security, with agencies like the TSA being major procurers.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, the primary contractor, VMD Systems Integrators, LLC, is likely a larger entity. There is no explicit information on subcontracting plans for small businesses within the provided data. Without this information, it's difficult to assess the direct impact on the small business ecosystem, though larger prime contracts often have subcontracting goals.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of Homeland Security (DHS) and specifically the Transportation Security Administration (TSA). Mechanisms likely include contract performance reviews, site visits, and adherence to service level agreements. Transparency is generally maintained through contract award databases like FPDS. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to the contract.

Related Government Programs

Airport Security Services
Transportation Security Administration Contracts
Department of Homeland Security Procurement
Federal Security Guard Services
Airport Screening Personnel Contracts

Risk Flags

Potential for vendor lock-in if technology evolves rapidly.
Ensuring consistent service quality over a long contract term.
Dependence on a single provider for critical security functions.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $105.7 million to VMD SYSTEMS INTEGRATORS, LLC. COMPREHENSIVE SECURITY SCREENING SERVICES AT KANSAS CITY INTERNATIONAL AIRPORT (MCI) P00002 REVISED POP, SO HAD TO UPDATE BASE CAR WITH NEW START DATE

Who is the contractor on this award?

The obligated recipient is VMD SYSTEMS INTEGRATORS, LLC.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (Transportation Security Administration).

What is the total obligated amount?

The obligated amount is $105.7 million.

What is the period of performance?

Start: 2020-05-01. End: 2025-04-30.

What is the track record of VMD Systems Integrators, LLC with federal contracts, particularly with the TSA?

VMD Systems Integrators, LLC has a history of securing federal contracts, including significant work with the Department of Homeland Security and its various components like the Transportation Security Administration (TSA). Their portfolio often includes security services, IT support, and logistics. Analyzing their past performance on similar TSA contracts would reveal their ability to meet performance requirements, manage large workforces, and adhere to strict security protocols. A review of past performance evaluations and any contract disputes or awards would provide further insight into their reliability and effectiveness as a federal contractor. Their sustained presence in bidding for and winning such contracts suggests a generally positive track record, though specific details on past performance metrics would require deeper data analysis.

How does the per-hour cost of security screening personnel under this contract compare to industry benchmarks?

The provided data does not include a per-unit cost or hourly rate for the security screening personnel. To benchmark this, we would need to know the number of personnel deployed, their average hours worked, and the total labor cost component of the contract. Comparing this to publicly available data on average wages for security screeners, factoring in benefits, overhead, and profit margins for government contracts, would be necessary. Given the firm-fixed-price nature, the TSA has likely negotiated rates that they deem competitive, but without specific labor cost breakdowns, a precise comparison is not possible from the current data alone. Industry benchmarks for similar airport security roles can vary significantly by location and required certifications.

What are the key performance indicators (KPIs) used to evaluate the effectiveness of VMD Systems Integrators, LLC's security screening services?

While specific KPIs are not detailed in the provided contract abstract, typical performance indicators for airport security screening contracts include metrics related to screening wait times, the number of security incidents detected, compliance with TSA security directives, personnel training completion rates, and customer satisfaction (passenger feedback). The contract likely specifies acceptable performance thresholds for these and other relevant metrics. Failure to meet these KPIs could result in penalties or corrective actions. The TSA's contract management team would be responsible for monitoring these KPIs throughout the contract's duration to ensure the contractor is meeting its obligations and maintaining the required level of security.

What is the historical spending trend for comprehensive security screening services at MCI airport by the TSA?

The provided data represents a single contract award for comprehensive security screening services at MCI airport from May 2020 to April 2025, valued at $105.7 million. To understand historical spending trends, we would need to examine previous contracts awarded for similar services at MCI. This would involve looking at contract awards from prior years, identifying the incumbent contractors, and analyzing their contract values and durations. Understanding if spending has increased, decreased, or remained relatively stable over time would provide context for the current award. It's also important to consider if the scope of services has changed, which could influence spending levels.

What is the potential risk associated with the five-year duration of this contract in terms of technological advancements in screening?

A five-year contract duration for security screening services carries a moderate risk related to technological advancements. While screening technology evolves, the core requirements for passenger and baggage screening are often mandated by federal regulations, which may not change rapidly. However, over five years, significant advancements in areas like AI-powered threat detection, advanced imaging, or biometric identification could emerge. The risk lies in the contract potentially locking the TSA into using older technologies if the vendor's solutions do not keep pace or if contract modifications to incorporate new tech become cumbersome or costly. The firm-fixed-price nature might also disincentivize the contractor from proactively upgrading unless contractually obligated or incentivized.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Investigation and Security Services › Security Guards and Patrol Services

Product/Service Code: UTILITIES AND HOUSEKEEPING › HOUSEKEEPING SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 70T05018R5NSPP041

Offers Received: 6

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: VMD Systems Integrators LLC

Address: 4114 LEGATO RD, FAIRFAX, VA, 22033

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Not Designated a Small Business, Special Designations, Indian (Subcontinent) American Owned Business, U.S.-Owned Business, Woman Owned Business

Financial Breakdown

Contract Ceiling: $131,363,812

Exercised Options: $105,699,775

Current Obligation: $105,699,775

Actual Outlays: $58,285,796

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: HSTS0516DSPP913

IDV Type: IDC

Timeline